Please find below, our newsletter for this period.
Our tax department is fully engaged with filing of 2019 tax returns. The deadline is at end of November for non-provisional taxpayers and end of January 2020 for provisional taxpayers.
A company’s tax return must be filed within 12 months of its year end.
Please ensure you respond timeously to request from our staff for documents and authorisation to file these tax returns.
Note, that the 2nd provisional tax return for 2020, is end of February 2020. More information on this in the new year.
As an aid in understanding the Financial Life Cycle, refer to the two attached Flow Charts.32
We also bring to your attention two new developments this tax season, as follows:
- SARS is now actively removing money from business bank accounts post issue of a final demand for outstanding tax debt – Finsolve can assist with either a Deferment or Compromise
- The increased instance of SARS request for IT14SD returns for Supplementary Data post submission of Company Income tax returns for 2019, in effect a mini audit. Finsolve will manage this on your behalf with SARS.
The 2019 Annual Financial Statements (AFS) season is now winding down as Steve and Sharon wrap up the final AFS.
See above mentioned Financial Life Cycle schematic via link below:
The AFS is used not only for filing company tax returns, but with CIPC as part of the annual return filing. Other stakeholders, such as Banks and Shareholders are key users of these statements.
Remember, to ensure that your Close Corporation or Company, has a compliant Asset Register, as we find SARS is requesting this more frequently, as they focus on wear and tear (ie tax depreciation) allowances.
See link below on so called “Debit” shareholder loans – those loans where you as the shareholder have withdrawn funds out of the business in excess of what was injected. There are some significant negative consequences of this position. Our monthly management reports highlight this for you.
Operating Cash – After adjusting for cash tied up in Working Capital, the resultant figure will determine the cash generated from operations – a key indicator of the business’s pricing and cost control efficiency (or lack thereof).
Review this figure in your AFS, – if negative (in brackets) this is a red flag that the company cannot generate adequate cash to cover operating activities.
See article on 6 ways to ensure your business maintains a healthy cash flow via link below:
Our webinar training sessions continue to be very popular. We have also launched masterclass series – which are deep dive two-day training session with course specialists to really understand the issues facing businesses, such as vat, bookkeeping etc– check out our website for more details and ensure you stay current with vat, credit collection and many other topics. www.bizfacility.com
Remember, being aware of your business’s financial position and performance, is also your responsibility – it’s your livelihood and future after all.
Estate planning and trusts
We remind all our clients of this offering – we have a highly experience lawyer working with us backed up with solid infrastructure.
Estate planning is vital for the protection of your wealth at time of your death, as the cost of estate management at time of death can be large. If you have assets that you or your trust own, you need to contact us asap.
Please contact us for more information and ensure you have plans in place. Death can come very quickly and unexpectedly
Ensure you have a valid will in place – now!
Gavin Beretta – Finsolve Group